Central Vermont allowed 4.27 percent rate increase

Business Wire, Nov 2, 1994

RUTLAND, Vt.--(BUSINESS WIRE)-- Nov. 2, 1994 -- On Oct. 31, 1994, the Vermont Public Service Board (PSB) issued an order allowing Central Vermont a 4.27 percent increase in its base retail rates. This means new revenues of approximately $8,575,000. The new rates went into effect with service rendered beginning November 1, 1994. CV had requested an 8.9 percent, $17.9 million, increase in rates in February 1994.

The PSB order also lowered the allowed rate of return on the company's common stock equity from 12 percent to 10 percent. This return includes a .75 percent penalty for "mismanagement of power supply options" and the company's "failed efforts to acquire all cost-effective energy-efficiency resources." The company disagrees with the PSB's conclusions.

Based on a preliminary review of the rate order, the company anticipates an after- tax write-off of approximately $2.0 million during the fourth quarter of 1994. Central Vermont is the largest electric utility in Vermont serving half the state's 560,000 residents.

CONTACT: Bruce H. Simons

802-747-5427/home 802-775-1593